Ubisoft is facing a turbulent period, as the company reveals declining revenues and acknowledges that many new games are struggling to gain traction in a market shifting away from traditional full-price releases.
Once prominent projects are having trouble achieving the sales they used to, according to a recent UK financial filing, which attributes this to a changing landscape in player preferences.
The company notes that the “traditional ‘full game model’ of selling a single £50-60 [$65-$80] game to a consumer as a one-time purchase” is becoming less common. Instead, gamers are gravitating towards “subscription services, long-running Games As A Service titles, Free to Play Games and cloud streaming.”
In summary, Ubisoft states, “consumers are playing fewer games.” While some full-price titles remain successful, they are now “a few notable exceptions” in a broader trend.
Challenges Amidst Corporate Changes
The statement comes as Ubisoft experiences ongoing challenges, including layoffs and a major corporate restructure over the past year. Based in Paris, the company — whose leading franchises are now under an independent subsidiary backed by Tencent — struggles to find its next major success following underwhelming sales of titles like Star Wars Outlaws and persistent efforts to break into the crowded live-service game market with projects like XDefiant and the prematurely canceled The Division: Heartland.
The Future of Assassin’s Creed
As Ubisoft shifts focus to its flagship franchise, Assassin’s Creed, the company slows the development of future games and remakes to provide more time for this year’s Assassin’s Creed Shadows. Despite this, fans can expect several new titles in the series over the coming years, including the witchcraft-themed Hexe, a multiplayer spin-off, and a highly anticipated Black Flag remake.
Last week, Ubisoft abruptly suspended its share trading and postponed the company’s latest financial report just minutes before a scheduled shareholder call. As players and employees await further explanation, the gaming world watches closely for updates.